A steel manufacturing business, founded in 1883 and responsible for supplying steel tracks for Melbourne’s tram and train networks, has collapsed into administration – and is set to close for good.
The downfall is yet another one of the many steel companies which have been forced to close over the past few years, with the manufacturing industry remaining under intense pressure.
DaviesBaird was placed in administration last month after 130 years in business, with Deloitte partner Neil Cussen appointed.
Deloitte told SmartCompany in a statement the company’s financial position revealed a “lack of working capital”, which led to a closure of the company and, “regrettably…the immediate termination of employment for all staff”.
“No deed of company arrangement has been proposed at this stage and it is likely that the company will be placed into liquidation,” it said.
Former DaviesBaird general manager Russell Maker told SmartCompany this morning the business has all but closed, with only himself remaining in a caretaker role.
“Principally, this is a reflection of manufacturing and what’s happening in this industry,” he says.
“This was just a small business with about 45 employees, but it’s a true reflection of what’s happening.”
“One manufacturing disappears, what’s going to happen then? Where are people going to find jobs?”
Maker all but confirmed the company will close up for good, saying that the company is unlikely to open its doors ever again.
“Most of the people here had been here for over 20 years, and for a lot of them their fathers and grandfathers had worked in this facility.
“Several of them have never worked anywhere else.”
DaviesBaird began as a foundry in 1883, although the company moved to a more advanced facility in Coburg in 1968, where it has remained. The company has primarily manufactured materials including pumps and valves, turbine runners and manganese steel switches and crossings for rail tracks.
The company has been a primary supplier of track works and castings for Melbourne’s tram and train networks. The success of these products allowed the business to offer similar products overseas.
DaviesBaird is the latest in a string of companies in the steel industry to face closure. Earlier this year, a Melbourne-based steel business turning over more than $40 million a year collapsed, while in May steel business DTD Engineering, with $6 million in turnover, went under as well.
In April, another Melbourne manufacturer of steel products, Rebar Prefab, also went into administration.
Industry veterans complain cheap imported products have placed pressure on supply prices.
Maker told SmartCompany the situation faced by DaviesBaird is a “sad indictment” on the state of the industry.
“There is a whole raft of things that need to be changed,” he says.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
Comments